Asian stocks rose Tuesday, with markets in Japan and Hong Kong tilting higher as investors bought financials such as Mitsubishi UFJ Financial Group and property developers such as Cheung Kong Holdings on speculation the Federal Reserve will cut interest rates in an attempt to avert a U.S. recession next year.
Japan's Nikkei 225 ended 0.8 percent higher at 16,044.72. The Topix index added 0.6 percent to 1,567.02. Sony Corp. led gains among export-related shares after the U.S. dollar climbed to a one-month high against the yen.
Hong Kong's Hang Seng Index climbed 725 points, or 2.6 percent, to end at 29,226.84 while the China Enterprises Index, or shares of mainland companies listed in Hong Kong, added 01.8 percent to 17,497.77.
Real estate shares were in focus in Hong Kong with Cheung Kong adding 4.6 percent while office landlord Swire Pacific added 7.7 percent and Sun Hung Kai Properties added 6.8 percent.
Financial shares were mostly higher after news of a private-equity investment in bond insurer MBIA Inc. and a capital injection from external investors in UBS lifted the financial sector in overnight trading and eased credit concerns.
Shares of Mitsubishi UFJ and Sumitomo Mitsui Financial Group both climbed 0.6 percent while Commonwealth Bank of Australia added 0.5 percent. Hong Kong-listed HSBC Holdings climbed 2.2 percent.
Natural resource shares were generally higher, with Australia's BHP Billiton adding 1.4 percent and Japan's Mitsubishi Corp. climbing 6.1 percent. Rio Tinto was down 0.1 percent.
Shares of ball point pen maker Pilot Corp. climbed 7.5 percent after the firm reportedly planned to split its existing shares on a five-for-one basis on Jan. 1.
ELSEWHERE:
SEOUL: South Korea's Kospi index advanced 1 percent to 1,925.07.
SINGAPORE: The Straits Times Index added 0.1 percent to 3,589.03.
TAIPEI: Taiwan's Weighted Price Index added 0.5 percent to 8,638,33.
SYDNEY: Australia's benchmark S&P/ASX 200 was up 0.8 percent at 6,680.4.
with files from other wire services
